Major milestone reached towards the integration of European electricity balancing markets

Dec 20, 2018

Through balancing, transmission system operators (TSOs) continuously ensure that the electricity system frequency is kept within a defined security range and that the required level and quality of power reserves is maintained. This is essential for the good functioning on the power system. The Commission regulation establishing a guideline on electricity balancing (“EBGL”), one of the eight European network codes, seeks to integrate balancing markets across Europe.

European TSOs have now reached a decisive milestone in the implementation by submitting six proposals enabling the integration of national balancing markets and the creation of European platforms for the exchange of balancing energy products. The proposals were developed in close cooperation by all TSOs, via ENTSO-E, and the four balancing implementation projects IGCC, PICASSO, MARI and TERRE. They have been consulted with stakeholders on multiple occasions and are submitted to national regulatory authorities (NRAs) for approval.

“This is a very important achievement. TSOs’ proposals will lead to increased cross border participation and thus increased security of supply. Competition will be boosted across Europe by creating a level playing field for all market players And participation of renewables and demand response in balancing market will be facilitated thus helping reduce emissions. A true ‘win-win-win’ situation, good for customer, the environment and the economy”, commented Laurent Schmitt, ENTSO-E Secretary General.

Other milestones include the adoption by NRAs of the implementation framework for the Replacement Reserve submitted in June and the soon to be delivered amendment to the Imbalance Netting implementation framework. Meanwhile, TSOs already invest to translate these proposals into practical projects and platforms some of which will be presented at the upcoming ENTSO-E and E.DSO innovation conference, InnoGrid, scheduled on 13-14 May 2019.

For more information on the proposals and the balancing implementation projects, please visit the EBGL page or download the E Codes App. For more information on the balancing markets in Europe in general please check ENTSO-E’s overview ‘Electricity Balancing in Europe’.